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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingExpert

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If average profit is ₹110000 and normal profit is ₹135000 what is the correct conclusion under super profit method?

Answer and explanation

Correct answer: There is no super profit

Average profit is lower than normal profit so there is no extra profit. Without super profit goodwill is not considered under this method.

Related tags

Super Profit Negative Super Profit Concept Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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